bitcoins aren't a ponzi scheme. the increasing value is due to market forces, not new investors. at this moment there is a finite number of bitcoins on earth. it is impossible to keep filling the coffers with new "investors," unless you believe that there is NOT a finite number in circulation at this moment (which wouldn't be a ponzi scheme as much at outright fraud)

quote:If Bitcoin is nothing more than Farmville points, like people say, I don't see why there is such a big need to warn people about the evils of gathering too many points on Farmville. If you don't think it's any more important than Farmville points, then who cares?

Do people pay real money for Farmville points under the illusion that those points can be exchanged for a larger amount of real money later?

In economics, a commodity is a marketable item produced to satisfy wants or needs.[1] Economic commodities comprise goods and services.[2] The more specific meaning of the term commodity is applied to goods only

quote:bitcoins aren't a ponzi scheme. the increasing value is due to market forces, not new investors.

The purpose of Bitcoin is to become a new vehicle to trade goods and services. By your understanding of Bitcoin as an INVESTMENT it is easily a Ponzi scheme.

I think of it as a currency with a basis that early adopters recruit new adopters by selling something that will eventually have no value. That is why I say it is a Ponzi scheme.

quote:at this moment there is a finite number of bitcoins on earth.

There will always be a finite number.

quote:it is impossible to keep filling the coffers with new "investors,"

Very possible. A Bitcoin is divisible to 0.00000001 The flaw of bitcoin is when 0.0000001 BTC can buy you a loaf of bread and 10 BTC can buy you an island in the Pacific. You have these early adopters (specifically the programer and his pals) becoming the mega rich for very little work.

re: Bitcoin will ruin people(Posted by C on 3/29/13 at 9:02 pm to SlowFlowPro)

SPF, people are not using bit coins to exchange goods and services. They are hoarding them to inflate the price. Some are being exchanged to conduct illegal activity or gamble but they aren't being used for common purchases despite their being a means to do this. The current expansion is all about the perception of use but not reality.

quote: You have these early adopters (specifically the programer and his pals) becoming the mega rich for very little work.

this is a niche market. you don't think the market would react long before this scenario arose?

but you're missing my point

1.there are a finite number of bitcoins (yes they are divisible, but that's irrelevant) 2. the "early adopters" have some amount of them

the market value is only based on the available BTC being bought/sold. if the early adopters are hoarding the BTC, then the value of the BTC they're hoarding is artificially diminished. you might as well just ignore that these exist and think of the BTC in circulation as the amount that determines the value. if this occurs, the early adopters cannot attain the value you are asigning their BTC down the road